I honestly prefer games where the "world" is very concentrated.
I don't like it when a world has hundreds of cities but they're all the same, or they're all very tiny. When was the last time you saw a real town that only had 2 houses, a shop, and an inn?
I prefer fewer towns, but larger, more developed ones.
And as for locations, I dislike overworld systems in general.
I get that shrinking the world is supposed to give you a sense of how large it is, but it doesn't do that. All it does exactly what it sounds like. Shrink the world. It makes things about your world less interesting. I would prefer a game where you don't travel on an overworld, you either travel on foot on actual maps from one town to another (assuming these maps are interesting and actually have things on them, instead of just being miles of grass or a long path), or even just the screen fades to black and an implied journey occurs.
I've been toying with the idea of cutting out the overworld from my game, and just showing a short "travel cutscene" between towns and other locations. And there might be the odd ambush here and there, as well. I think that would result in player paying less attention to the journey and more attention to the destination.
Not that the journey can't be interesting, but trying to force the journey to be interesting by making the player walk aimlessly through an oversized map and "discover" things just doesn't do it for me.
Overall, I just think more emphasis needs to be put on actual locations instead of the areas in between. If you're going to make me walk across a long overworld, I at least want to feel some sense of reward when I find a town or something. Instead it's just another town like all the others, with 2 houses, a shop and an inn.